The Simplest Version of the Economic Order Quantity Decision Model

question 82

Multiple Choice

The simplest version of the economic order quantity decision model assumes all of the following EXCEPT

• A)the same fixed quantity is ordered at each reorder point.
• B)demand ordering costs and carrying costs are certain.
• C)purchase order lead time is certain.
• D)no stockouts occur.
• E)purchasing costs per unit depend on the quantity ordered.

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